Tag Archives: Operating Income

Geisinger’s operating income tumbles 34%

Posted on by • Posted in Uncategorized • Tagged , , , , • Leave a comment

https://www.beckershospitalreview.com/finance/geisinger-s-operating-income-tumbles-34.html

Image result for geisinger

Danville, Pa.-based Geisinger recorded an operating surplus of $109.6 million in the fiscal year ended June 30, down 34.6 percent from an operating surplus of $167.5 million in the year prior, according to recently released bondholder documents.

Geisinger’s revenues climbed 14.3 percent year over year to $6.3 billion in fiscal year 2017. The growth was primarily due to a 13.9 percent increase in patient service revenue and a 15.8 percent increase in premium revenue. Geisinger’s health plan membership climbed 5.8 percent year over year.

The system’s expenses also grew in the most recent fiscal year. Geisinger’s expenses totaled $6.2 billion in the most recent fiscal year, compared to expenses of $5.5 billion in the year prior.

“We view fiscal 2017 as a successful year for Geisinger,” Kevin Brennan, executive vice president and CFO of Geisinger, said in a statement to Becker’s Hospital Review. In addition to the growth in patient and premium revenues, Mr. Brennan said the system completed a successful $587 million bond offering in May and ended fiscal year 2017 with 242 days cash on hand.

“Fiscal 2017’s operating income reduction in comparison to the previous year reflects significant investments in operational improvement planning and the implementation of revenue growth and expense efficiency initiatives,” said Mr. Brennan. “Aside from launching innovative care redesign initiatives intended to ensure Geisinger’s long term success, we also successfully integrated the Geisinger Commonwealth School of Medicine (formerly The Commonwealth Medical College).”

Geisinger ended fiscal year 2017 with a net surplus of $444.5 million, compared to a net surplus of $667.3 million in fiscal year 2016.

Kaiser’s operating income jumps 57% to $772M

Posted on by • Posted in Uncategorized • Tagged , , , , , , • Leave a comment

http://www.beckershospitalreview.com/finance/kaiser-s-operating-income-jumps-57-to-772m.html

Image result for kaiser permanente

Oakland, Calif.-based Kaiser Permanente reported higher revenue and operating income for its nonprofit hospital and health plan units in the second quarter of 2017.

Kaiser saw revenue climb to $18.1 billion in the second quarter of this year. That’s up 14.6 percent from revenue of $15.8 billion in the same period of 2016.

That boost was attributable, in part, to the system’s health plan unit. In the first half of 2017 Kaiser added 1.1 million health plan members. This growth was partially attributable to Kaiser’s acquisition of Seattle-based Group Health Cooperative in February. As of June 30, Kaiser had about 11.7 million members.

Kaiser reported operating income of $772 million in the second quarter of this year, up 57.2 percent from $491 million in the same period of 2016.

After factoring in non-operating income, Kaiser ended the second quarter of 2017 with net income of $1 billion, up from net income of $707 million in the second quarter of the year prior.

Summa Health to cut 300 positions, scale back services in face of $60M operating loss

Posted on by • Posted in Uncategorized • Tagged , , , , , , , • Leave a comment

http://www.healthcaredive.com/news/summa-health-to-cut-300-positions-scale-back-services-in-face-of-60m-oper/445874/

Image result for summa health

Dive Brief:

  • Facing steep operating losses, Summa Health will shed 300 positions and rein in its services, Cleveland.com reported. Half of the eliminated positions are currently empty.
  • The Akron-based health system recorded $30 million in profits in 2016, but expects $60 million in operating losses this year brought on by low inpatient and outpatient numbers.
  • “This year, inpatient and outpatient volumes are dramatically down and, as a result, we are facing staggering operating losses, interim President and CEO Cliff Deveny said in an internal memo to staff on Monday. “While we have considerable cash in reserve to protect us for the short term, this trend must stop immediately.”

Dive Insight:

Summa’s future has been uncertain since CEO Thomas Malone resigned in January. His departure followed a letter signed by 240 Summa physicians giving him a vote of no confidence and urging him to leave. The physicians complained of not being consulted on major changes that would affect patient care at Summa and questioned the nonprofit health system’s decision to sever a contract with emergency physicians.

As patient care shifts from inpatient to outpatient/virtual settings and hospitals face reimbursement cuts, nonprofit and for-profit hospitals alike are struggling to keep operating losses under control. In March, for example, Cleveland Clinic reported a 71% drop in operating income from $480.2 million in 2015 to $139.9 million last year — despite a 12% jump in revenues to $8 billion. Among expenses weighing the system down were pharmaceuticals (up 23%), labor (up 19%) and supplies (up 13%).

More than half of hospitals in the U.S. suffered operating losses in 2016, Cleveland Clinic CEO Toby Cosgrove said earlier this year during a panel to discuss changing demands on healthcare systems. While healthcare reforms are forcing hospitals to transform care delivery, they aren’t being funded adequately to do so, he said.

NYC Health + Hospitals suffered a $76 million operating loss in the first half of fiscal 2017, softened slightly by about $78 million in capital contributions from the city. The health system blamed the loss in part on timing of government payments and the need to count costs like depreciation. The health system has experienced several years of operating losses and had hoped to flip their luck with implementation of a $764 million Epic EHR. However, implementation fell far behind H+H’s original spring 2016 systemwide go-live deadline.

And Boston-based Partners HealthCare suffered $108 million in operating losses for fiscal 2016. The health system has struggled financially since purchasing Neighborhood Health Plan, Medicaid managed care subsidiary in 2012. Partners was hit with a nursing strike and expenses related to implementation of a new EHR system.

Kaiser Permanente operating income grows as membership booms

Posted on by • Posted in Uncategorized • Tagged , , , , , , , , • Leave a comment

http://www.beckershospitalreview.com/finance/kaiser-permanente-operating-income-grows-as-membership-booms.html

Image result for kaiser permanente headquarters

Oakland, Calif.-based Kaiser Permanente saw revenue and operating income increase in 2016, according to recently released bondholder documents.

Kaiser said operating revenue for its nonprofit hospital and health plan unit climbed 6.4 percent year over year to $64.6 billion in 2016. After factoring in expenses, Kaiser ended 2016 with operating income of $1.9 billion, up from $1.8 billion in the year prior.

Kaiser reported a strong year in health plan membership growth. The system ended 2016 with 10.7 million members, an increase of 4.2 percent from the year prior. After completing its acquisition of Seattle-based health plan Group Health Cooperative Feb. 1, Kaiser’s health plan membership now tops 11 million.

In 2016, Kaiser’s capital spending increased to $2.8 billion, up slightly from $2.7 billion in 2015. The system opened a new technology campus in Atlanta and 12 new medical offices and two new dental offices last year.

Fueled by strong nonoperating income, Kaiser reported net income of $3.1 billion in 2016, up from $1.8 billion in 2015.